Be able to describe fixed and variable rates of interest
Starter (10 mins)
Interest rates in the UK are set by the Bank of England, however the rate they set is not the rate YOU pay.
Find out the UK interest rates over the past 30 years
Why do you think people are borrowing more money than in 1989?
Keywords (5mins)
Activity (20 mins)
In a group of 4 find out some interest rates from UK banks for -
Business Loan
Mortgage
Personal Loan
Compare this to a typical interest rate from a payday loan company...
Task (20 minutes)
We will write a model answer to this question as a class - Explore the website below and make a few NOTES about how such a business would be affected by high interest rates......
Question (8 Marks)
When the price of borrowing is high how will the economy be affected? What effect would this have on a small business selling handbags that Mrs Evans likes!
Plenary (5 mins)
Would you borrow money to buy the following
House
Car
Holiday
iPad
What else would you borrow money for? Is this sensible??
The Economic Context
Lesson 1 Lesson 2 Lesson 3 Lesson 4 Lesson 5 End of Unit Test
Lesson Objectives
Starter (10 mins)
Interest rates in the UK are set by the Bank of England, however the rate they set is not the rate YOU pay.Keywords (5mins)
Activity (20 mins)
In a group of 4 find out some interest rates from UK banks for -Compare this to a typical interest rate from a payday loan company...
Task (20 minutes)
We will write a model answer to this question as a class - Explore the website below and make a few NOTES about how such a business would be affected by high interest rates......Question (8 Marks)
When the price of borrowing is high how will the economy be affected? What effect would this have on a small business selling handbags that Mrs Evans likes!
Plenary (5 mins)
Would you borrow money to buy the followingHouse
Car
Holiday
iPad
What else would you borrow money for? Is this sensible??